Optimal Media Mix
The optimal media mix is the specific allocation of budget across channels that maximizes total revenue for a given total spend level. It is the mathematical solution to the 'budget allocation problem', found by equalizing marginal returns across all channels.
The Short Version
The perfect recipe. The exact dollar amount for every channel to get the most revenue.
Visual Explanation
What Are Marginal Returns?
Your best channel eventually stops working. Understand diminishing returns.
Prerequisites
The Guesswork Portfolio
Most brands set budgets based on 'what we did last year' or 'what the agency recommends'.
This results in a suboptimal mix where some channels are over-funded and others are starved, depressing total ROI.
How it works
Calculate marginal return curves for all channels
Use an optimization algorithm (Solver) to find the point where Marginal Return A = Marginal Return B
Output the target spend for each channel
Common Misconceptions
Optimizing for clicks instead of revenue
Ignoring constraints (e.g., 'We must spend $10k on Brand')
Setting the mix once a year (It should be fluid)
Frequently Asked Questions
QDoes optimal mean risky?
No. The optimal mix is actually the safest because it is diversified based on performance proof, not hunch.
QWhat if I can't move budget that fast?
We allow you to set constraints (e.g., 'Max 10% change per week') so the optimization path is realistic for your team.